Xperi goes after NVIDIA for patent infringement

NVIDIA is the subject of Xperi's latest patent case. The firm claims NVIDIA violates five of its patents, which mainly deal with packaging methods for semiconductor chips. Technically, this part of the production is handled by TSMC, but Xperi alleges that NVIDIA is responsible for the design of the overall GPU, including its package.

In both cases, Xperia won settlements, making it a giant-killer given its roughly $1.2 billion-market cap. In his Q1 2019 Earnings Call, Xperi CEO Jon Kerchner stated "...Today we filed a lawsuit against NVIDIA for patent infringement. We believe that NVIDIA is using our patent semiconductor technology in certain of its CPUs and processors and we have been speaking with NVIDIA for several years about taking a patent license. We ultimately could not reach an agreement and we felt that we needed to take this action to defend our intellectual property rights. We filed the case in Delaware Federal Court asserting 5 patents."